Golden Harvest gets rid of Malaysian chains

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HONG KONG - Golden Harvest has agreed to dispose of its cinema chains in Malaysia to focus on the Greater China market, selling its remaining 50% stake in Tanjong Golden Village cinemas for HK$96.5 million (US$12.37 million) through two of its subsidiaries, the company announced Wednesday.

Malaysia's Tanjong Entertainment will purchase the 25% stake owned by Hong Kong-based Golden Harvest Cinemas (GHC) and Malaysia-based Global Entertainment and Management Systems (GEM). Both are subsidiaries of Golden Harvest Entertainment Holdings. The terms of the sale include that Tanjong will pay off a loan of HK$25.9 million owed by TGV to Golden Harvest, in addition to the sale price.

TGV, the second-largest multiplex circuit in Malaysia with 56 screens, was a joint venture between Malaysia's Tanjong Entertainment, Hong Kong's Golden Harvest and Australia's Village Roadshow.

This was Golden Harvest's second multiplex chain sale in Malaysia in 12 months, after selling its stakes in Golden Screens Cinemas last February. The company aims to reallocate its resources to its film distribution and exhibition business in the Greater China area, the company said in a statement.

Since 2005, the company has acquired the largest cinema chain in Taiwan and opened a flagship cinema in Shenzhen.